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Will the Federal Reserve hike interest rates at its next meeting in June — for the 11th time in a row — or pause? Wall Street seems to be betting on the latter, but it was a topsy-turvy journey to that consensus last week.
What happened: The Fed’s meeting earlier this month fueled hopes that it was done with rate hikes, at least for now. Then,a slate of economic data last week came in stronger than expected.
Retail spending rebounded in April after two months of declines, suggesting that consumers are still spending despite tightening their purse strings. Jobless claims declined more than expected for the week ended May 13, staying below historical averages.
Traders saw a roughly 36% chance last Thursday that the Fed will raise rates by another quarter point in June, up from around 15.5% on May 12, according to the CME FedWatch Tool.
Then, Fed Chair Jerome Powell weighed in mid-morning Friday. In a panel with former Fed head Ben Bernanke, Powell said that uncertainty remains surrounding how much demand will decline from tighter credit conditions and the lagged effects of hiking rates. Traders pared down their expectations to about a 18.6% chance that the central bank will raise rates next month, as of Friday evening.
Experts seem to agree that the Fed is unlikely to raise rates again in June. “The absence of any such preparation [for a raise] is the signal and gives us additional confidence that the Fed is not going to hike in June absent a very big surprise in the remaining data, though we should expect a hawkish pause,” Evercore ISI strategists said in a May 19 note.
Jim Baird, chief investment officer at Plante Moran Financial Advisors, also expects the Fed to hold rates steady in June. But that decision isn’t set in stone, and the Fed will likely monitor three key factors in making its decision, he said. Those are:
The debt ceiling. President Joe Biden and congressional leaders have maintained that the US will likely not default on its debt. But if such a scenario were to happen, it could have catastrophic consequences for the economy and financial markets that would require the Fed wait for the crisis to be resolved before taking action.
Evolving financial conditions. The collapses of regional lenders Silicon Valley Bank, Signature Bank and First Republic have accelerated the tightening of credit conditions. While that has complicated the Fed’s plan to stabilize prices, it also could benefit the central bank by doing some of its work for it by slowing spending.
Delayed impact. The Fed’s interest rate hikes flow through the economy with a lag. So, it will take some months for the full effect of its aggressive tightening cycle to show up in the economy. That means the Fed could want to take a pause to monitor the continuing impact of what it has already done.
The Fed has also maintained that its actions are data dependent, meaning it will keep close watch on economic data that comes in before it’s due to announce its next rate decision on June 14.
Some key data points set for release before then include the April Personal Consumption Expenditures price index (that’s the Fed’s preferred inflation metric), May jobs report, the May Consumer Price Index and May Producer Price Index. (The latter two reports are due on the two days the Fed meets.)
If these data points show considerable weakening in the labor market or continued declines in inflation, that helps make the case for a pause. But signs of a robust economy with little to no signs of slowing down could mean the Fed has more room to tighten — and that it could take that opportunity.
Morgan Stanley chief executive to step down
Morgan Stanley chief executive James Gorman, 64, will step down from his role within the next 12 months, he said Friday at the bank’s annual meeting.
“The specific timing of the CEO transition has not been determined, but it is the Board’s and my expectation that it will occur at some point in the next 12 months. That is the current expectation in the absence of a major change in the external environment,” Gorman said.
Gorman, who is one of the longest-serving heads of a US bank and largely responsible for helping lead a sweeping transformation of the company after the 2008 financial crisis, became CEO in January 2010.
He will assume the role of executive chairman for “a period of time,” Gorman said, adding that the board of directors has three senior internal candidates in the pipeline to potentially take over as the next chief executive.
Read more here.
Jamie Dimon’s ‘war room’ sessions ramp up
The June 1 ‘X-date’ — the estimated point at which the US Treasury could run out of cash — is fast approaching. For JPMorgan Chase’s Jamie Dimon, another key date is already here.
The chief executive told Bloomberg earlier this month that he has held a so-called “war room” weekly to prepare the bank for the possibility the United States defaults on its debt. He plans to meet more often as the X-date approaches, and then meet every day by May 21, he said, adding that the meetings will eventually ramp up to take place three times a day.
“I don’t think [a default] is going to happen, because it gets catastrophic,” Dimon said. “The closer you get to it, you will have panic.”
Debt ceiling negotiations appeared to be going in a positive direction for most of last week. Both President Joe Biden and House Speaker Kevin McCarthy said that the United States is unlikely to default on its debt and seemed optimistic about the path to a deal.
But debt ceiling talks between the White House and McCarthy’s office have hit a snag, and negotiators put a pause on the talks, multiple sources told CNN Friday.
While that doesn’t mean the negotiations are falling completely apart, or that the country is headed for a default, it does pose more challenges for the stock market, which has stayed relatively resilient despite debt ceiling worries starting to slowly creep in.
Dimon said in the same Bloomberg interview that he’d “love to get rid of the debt ceiling thing” altogether.
The debt ceiling situation “is very unfortunate,” he said. “It should never happen this way.”
Up next
Monday: JPMorgan Chase investor day.
Tuesday: April new home sales. Earnings from Lowe’s (LOW).
Wednesday: May Fed meeting minutes.
Thursday: GDP Q1 second read, April pending home sales, mortgage rates and weekly jobless claims. Earnings from Costco (COST), Dollar Tree (DLTR) and Best Buy (BBY).
Friday: April Personal Consumption Expenditures and May University of Michigan final consumer sentiment reading.
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Do you enjoy spending your hours at work in the office, or do you like to be outside? Do you find it fun and exciting when a deal is done, or are deals just more busy work for your day?
If any of those questions have got stuck on repeat in your head, then these real estate investment trusts might be a good career path for you.
The short answer: Real estate investment opportunities are plentiful and they come with varying degrees of risk and reward depending on what you’re looking for.
I know from experience that real estate investment trusts can be a good career path.
So if real estate investing sounds like something that might be right up your alley, keep reading!
What are Real Estate Investment Trusts?
Real Estate Investment Trusts, or REITs, are a type of investment that receive tax concessions from the government. This is because they are designed to promote the development and growth of the real estate industry.
Investors can put their money into diverse projects, such as hospitals, schools, warehouses, and hotels.
In addition, REITs are publicly traded companies that buy, sell, and operate cash flow-producing commercial real estate. There are some privately traded REITs as well.
Why REITs as an Investment?
REITs have many investors who make up their stock portfolio. These can be individuals such as retail investors like you and me or other businesses.
What’s more, is that REITs are trusts similar to mutual funds which offer stability for both short-term and long-term investments in property assets.
Finally, REITs offer investors a reasonable return on investment.
What are the different types of real estate investment trusts (REITs)?
Real estate investment trusts, or REITs, are a type of security that allows people to invest in real estate without actually having to own any property. They are similar to mutual funds, with the exception of their working procedure.
There are two major types of REIT: equity and mortgage. Each type has its own specific benefits and drawbacks.
Equity REITs
Equity REITs are the most common type of REIT and they generate their revenue primarily through rents, not by reselling properties. This makes them a relatively stable investment option and they are often used as a way to diversify an investor’s portfolio.
Mortgage REITs
Mortgage REITs are a type of real estate investment trust (REIT) that invests in mortgage-backed securities. They are similar to other types of REITs, but they tend to have a higher yield as they earn their income from the interest margin on the mortgages they own.
This makes them potentially sensitive to interest rate increases as it could reduce the spread between what they earn on loans and what they pay out in funding costs.
Hybrid REITs
Hybrid REITs use a combination of the two strategies. They own properties like equity REITS and use the money from investors to purchase mortgages like mortgage REITs.
How to Buy Real Estate Investment Trust
Real estate investment trusts, or REITs, are a type of security that allows investors to purchase shares in a company that owns and manages income-producing real estate.
There are three types of REITs: publicly traded, public non-traded, and private.
Publicly traded REITs are the most common and are listed on major stock exchanges. They offer liquidity and transparency but also come with higher risk.
Public non-traded REITs are not listed on exchanges but offer more liquidity than private REITs.
Private REITs are not available to the general public and have less liquidity than both publicly traded and public non-traded REITs. Private REITs can be sold only to institutional or accredited investors.
Pros and Cons of Investing in Real Estate Investment Trusts
When it comes to making money, real estate is always a sound investment. And with the popularity of real estate investment trusts (REITs), you no longer have to be a landlord or developer to invest in properties.
REITs are becoming increasingly popular because they offer investors diversification and liquidity- two key features that any good investment should have.
But like anything else, there are pros and cons to investing in REITs. Here are some things you should consider before you put your money into this type of trust:
Pros of REITs:
1) Diversification: Real estate is a very diverse asset class, and by investing in a REIT, you’re automatically spreading your risk across many different properties. This helps reduce the volatility associated with stock market fluctuations.
2) Liquidity: A key advantage of REITs is that they’re highly liquid- meaning you can sell your shares at any time without penalty. This gives you the freedom to take profits when the market is doing well or reinvest them when prices are down.
3) Professional Management: When you invest in a REIT, you’re essentially hiring professional property developers and managers to do all the hard work for you. This takes away the hassle of dealing with tenants, repairs, and other day-to-day tasks associated with owning property.
Cons on REITs:
1) No Say in Management: Unlike directly owning property, you have no say in how the REIT is managed. If you don’t agree with the way the managers are running things, there’s not much you can do about it.
2) Taxation: The tax laws surrounding REITs are a bit complicated, so make sure you consult an accountant before investing. In general, taxation is much easier than owning the property yourself, but it’s still something to keep in mind.
3) Fluctuating Values: Just like stocks, real estate prices can go up and down quickly. So if you’re looking for a stable investment that will always give you a return on your money, REITs might not be right for you.
How successful are real estate investors?
Real estate investment is a popular way to make money, but it’s not without its risks.
Those who are successful in this field often have a lot of money or access to money (private money, hard money, bank financing, self-directed IRA).
It can be a career if you’re willing to put in the work, but it’s important to think carefully before making that decision.
Real Estate Career Path
Many different real estate jobs offer high salaries and great opportunities for career growth. Plus you can match your experience to find the best real estate career path.
These jobs offer a variety of opportunities and allow you to work in a wide range of settings.
What are the Requirements of Managing a REITs?
Real estate investment trusts, or REITs, are a type of mutual fund that allow both big and small investors to pool their money together and invest in real estate. REITs offer a variety of benefits to investors, including an opportunity for capital appreciation as well as a strong income stream.
In order to qualify as a REIT, they must be registered with the SEC and meet certain other requirements.
1. Managed by Board of Directors or Trustees
In order to be a REIT, the company has to appoint a board of directors or trustees. The board is responsible for making sure the REITs comply with the regulations set by law and also exercise their fiduciary duties. Furthermore, the board approves important decisions such as changes in investment strategies, acquisitions, and dispositions.
2. Taxable Income Paid to Investors
One of the key requirements for managing a REITs is paying out at least 90% of its taxable income to the investors. This leaves limited room for the manager to use the REITs’ income for their own benefit and also minimizes taxes. As a result, it is crucial that a REITs manager has a strong understanding of tax laws and can effectively communicate with the investors.
3. Gross Income Generated from Real Estate Investments
In order to be a REIT, an organization’s income must come from at least 75% of its total assets in real estate. The other 25% may be invested in cash, securities, and other assets. This allows the company to grow without having to worry about being classified as a security corporation.
4. Number of Shareholders or Investors
Another requirement for managing a REIT is that there must be at least 100 investors and shareholders. In addition, no one shareholder can hold more than 50% of the shares (at least). This protects the interest of all shareholders and ensures that no one person or entity can control the REIT.
How to get started in the real estate investment trusts industry
There are many different ways to get started in the real estate investment trusts industry.
There is no one-size-fits-all answer when it comes to starting a career in this field. Every individual has their own strengths and weaknesses that they need to take into account.
One way is to start as an intern or apprentice and then work your way up the ladder.
You could get your business degree and find a career in REITs.
Another option is to become a real estate agent and specialize in commercial real estate.
There are many online courses and programs that can teach you about the industry, and there are also many books on the subject.
Whatever route you decide to take, remember that it’s important to do your research and learn as much as you can about the real estate investment trusts industry before jumping in headfirst.
How to Get Started as an Investor in the Real Estate Investment Trust industry
Real estate investment trusts, or REITs, can be a great way to invest in property and achieve your financial goals. However, in order to be successful, you will need cash to be able to invest in the REIT.
In addition, the cash must not be needed in the recent timeframe.
My favorite REIT platforms are:
What skills do you need to be successful in real estate investment trusts?
This section is specifically for those wanting to know… is real estate investment trusts a good career path?
First and foremost, you will need to have a degree in finance or another relevant discipline. This qualification will give you the basic analytical skills required for success.
In addition, experience in real estate is essential; it is one of the most complex and fast-paced industries around.
You will also need strong marketing skills. REITs are all about generating income through rent or capital gains, so you need to know how to market properties effectively.
Finally, good communication and people skills are important too; after all, you’ll be dealing with clients and tenants on a regular basis.
If you possess these skills, then real estate investment trusts could be the perfect career path for you!
In fact, if you keep using these good excuses to miss work, then a job change is probably needed.
The future of the real estate investment trusts industry
The real estate investment trusts (REITs) industry is rapidly growing and changing. In fact, REITS account for 2.9 million direct jobs (source).
As the world progresses, so does this industry, with new opportunities and challenges arising constantly. REITs offer a unique career path for those who are passionate about real estate and interested in making money.
Money should not be an issue in this sector, as REITs offer a rewarding career path for those who are willing to invest in it.
Check out the best paying jobs in real estate investment trusts.
Career Options within REITs
REITs offer the opportunity to be paid as an investor or career within the industry. Pay can vary depending on the company and its structure; however, most companies within this sector pay well.
If you work for a REIT, you can learn about investing in the real estate industry by being a part of it–an invaluable experience if you’re looking to invest personally into real estate yourself one day.
As the industry grows, so does the need for new people to enter it; companies are constantly looking for new people. In fact, they typically add 555,000 jobs per month (source).
Within the real estate investment trusts industry, there are various career paths that one can take.
Acquisitions
One common job within the REIT industry is acquisitions; which involves buying or selling real estate assets. This position requires a good understanding of the market and the ability to make quick decisions.
Analysts
In the real estate investment trusts (REITs) industry, analysts typically start out earning a salary of around $80,000 per year. With experience, they can move up to a management or executive role and earn a six-figure salary. Additionally, there are many opportunities for career growth in the REITs industry as it continues to grow.
Property Developer
In the real estate investment trusts (REITs) industry, the developers are the team responsible for building new projects from scratch. They identify potential investments, obtain the necessary permits and funding, and manage construction until completion.
This is an important role in the REITs industry as it drives expansion and innovation.
Property Managers
Property managers are famous for getting things done, and they are essential members of any REIT team.
There is no standard education background necessary for becoming a property manager; however, you need skills in project management and construction management.
Real Estate Agents
Agents typically earn more in commissions than their peers working in traditional real estate brokerages, making this a lucrative career path to consider.
Which real estate career makes the most money?
Real estate is a great way to invest and grow your money.
There are a variety of different ways to get involved in real estate, but one of the most popular ways is through real estate investment trusts (REITs).
REITs allow you to invest in a portfolio of properties without having to go out and find them yourself. This can be a great way to get started in real estate investing and build your wealth over time without day-to-day management.
Turn to Real Estate Career Pathway
Real estate investment trusts (REITs) are a good career pathway if you want to come up with better investment strategies. They can provide opportunities to learn about the market, make contacts and develop skills. However, it is important that you reflect on what skills you have, your resources, and where you align before entering this field.
There is a lot to consider when making the decision whether or not to pursue a career in real estate.
It is important to do your research, reach out to people in the industry, and reflect on what you’ve learned. Only then can you make an informed decision about your future.
It ultimately comes down to what you want and what you’re willing to do.
If real estate is your passion, then go for it!
But make sure you do your research and understand the risks involved. There’s no right or wrong answer, but be sure to weigh all of your options before making a decision.
Know someone else that needs this, too? Then, please share!!
Funds intended to benefit rehabilitation, home ownership through down payment assistance and affordable housing development in Kentucky, Ohio and Tennessee
CINCINNATI , May 9, 2023 /PRNewswire/ — The Federal Home Loan Bank of Cincinnati’s Board of Directors has approved a $12.8 million contribution to support the Bank’s housing and community investment programs. These funds will increase amounts available in 2023 for the Carol M. Peterson Housing Fund (CMPHF), Welcome Home Program (WHP) and, if available, competitive Affordable Housing Program (AHP) offering.
The CMPHF will open June 1 with funding of at least $5.0 million, an increase of $3.5 million from previously announced levels. The CMPHF offers grants to fund accessibility rehabilitation and emergency repairs for low-income homeowners with special needs or persons over 60.
The WHP will open July 6 and will offer at least $7.0 million in grants, an increase of $4.0 million from previously announced levels. The WHP offers $10,000 in down payment and closing costs assistance to low- to moderate-income homebuyers and $15,000 to honorably discharged veterans, surviving spouses of military personnel, and active duty military.
Any remaining funds not used under the CMPHF and WHP will be allocated to the 2023 competitive AHP offering.
“The FHLB Board of Directors’ clear commitment to affordable housing is evident through this additional $12.8 million contribution. These funds will help supplement two of our most popular programs that address the specific housing needs of the areas we serve—access to home ownership and quality of housing stock. By getting more homebuyers into homes through our Welcome Home Program and keeping them there as they age through our Carol M. Peterson Housing Fund, these funds will make a difference in communities throughout Ohio, Kentucky and Tennessee,” said Andrew S. Howell, President and CEO, FHLB Cincinnati.
This allocation is in addition to the FHLB’s required 10 percent of net earnings set-aside to fund the organization’s AHP. Since the inception of the AHP in 1990, the FHLB has awarded over $849 million in subsidies towards the creation of more than 105,000 units of affordable housing. Details and program guides for all housing programs, including eligibility information, are available at www.fhlbcin.com.
About the FHLB
The FHLB is a AA+ rated wholesale cooperative bank owned by 614 member financial institutions, including commercial banks, thrifts, credit unions, insurance companies and community development financial institutions in Kentucky, Ohio and Tennessee. The FHLB provides members access to products and services (primarily Advances, which are a readily available, low-cost source of funds, purchases of certain mortgage loans from members, and issuance of Letters of Credit to members) and a competitive return through quarterly dividends on their capital investment in the FHLB. The FHLB funds these products and services by raising private-sector capital from member-stockholders and, with the other Federal Home Loan Banks (FHLBanks) in the FHLBank System, issuing high-quality debt in the global capital markets. The FHLB also funds community investment programs that help its members create affordable housing and promote community economic development.
California mortgage tech firm Blend Labs is at risk of getting delisted from the New York Stock Exchange (NYSE) as a consequence of the company’s stock price slumping below $1 for more than a month.
Blend announced on Thursday that it received notice on April 28 from the NYSE that it was not in compliance with the stock exchange’s bylaws, which state that a company could be de-listed if its common stock traded below $1.00 for more than 30 trading days.
Blend has a six-month cure period to comply with the minimum share price requirements. As of market close on Thursday, it was trading at $0.58 a share.
Blend has a chance of meeting compliance if the stock has a closing price of at least $1.00 on the last trading day of calendar month during the six-month cure period, and an average closing share price of at least $1 over the 30 trading-day period ending on the last trading day of that month.
A spokesperson for the company said they are working with the NYSE and are “confident” in their ability to comply with the requirements.
Blend plans to notify NYSE of its intent to cure the deficiency, which may include initiating a reverse stock split, subject to approval by the board of directors and stockholders of the company, according to its 8-K filings.
The spokesperson said that Blend will share a formal update on how it plans to comply with the minimum share price requirements during its Q1 earnings call, which is scheduled for May 9.
“We are focused, we have a sense of urgency, and we are making meaningful progress as we execute against our strategy (…) We will share details about our business momentum and progress on our path to profitability then,” the spokesperson added.
The California mortgage tech firm — now at risk of getting delisted from the NYSE — was off to a promising start when it went public in July 2021.
Blend sold 20 million shares of Class A stock at $19 apiece, raising $360 million. With shares closing at $20.90, Blend had a valuation of around $4.6 billion.
Blend brought on hundreds of clients — including Wells Fargo, First Republic Bank, Mr. Cooper and U.S. Bank. — that ultimately powered about a quarter of mortgages originated during the pandemic years.
To survive the cyclical mortgage business, Blend has been striving to transform its mortgage business-dependent business model to a platform company.
Since 2019, the mortgage tech firm has been expanding into the consumer lending space, but with the Federal Reserve‘s unprecedented series of interest rate hikes, Blend wasn’t immune to financial losses.
In 2022, the firm posted a staggering loss of $796 million and operating expenses in 2022 jumped to $835.8 million from $313.2 million in 2021.
Can you use a VA loan to buy a condo or townhome unit instead of a single-family home? Simply put, the answer is yes. When the condo is located within […]
The post Blog first appeared on MilitaryVALoan.com.
loanDepot’s founder Anthony Hsieh won his two-month battle to nominate Steve Ozonian as a member of the lender’s board of directors, but the dispute had its consequences.
Blend Labs was hit especially hard by the mortgage market’s woes last year, posting a $763.8 million net loss over 2022. The mortgage fintech is anticipating growth in the second half of this year, but in the meantime is providing revenue guidance on a quarterly rather than annual basis, executives said Thursday evening in an … [Read more…]
Endeavor Moore Media – stock.ado Sterling Bancorp in Southfield, Michigan, pled guilty to securities fraud, conceding it filed false statements tied to its 2017 initial public offering and its annual regulatory filings the following two years. The legal issue was linked to Sterling’s tarnished Advantage Loan Program, or ALP. The company discontinued the low-documentation mortgage … [Read more…]